Welcome to the Total Mortgage Current Mortgage Rates Blog. There’s some economic data out today, but first, your daily mortgage rate forecast/advice.
Click here to get today’s latest mortgage rates.
Where are mortgage rates going?
Potential conflict in the Republican Party, Theresa May’s speech, and some fedspeak is causing U.S. treasury yields to decline this morning.
The former has to do with a Wall St. Journal article in which President-elect Donald Trump stated that he felt a proposed house Republican tax plan was “too complicated.” Now the markets are spooked that Trump and the Republicans are going to run into issues ironing out the details to not just this issue, but many others. The Trump Rally that took off after the election in part relied on Trump’s ability to get into office and make things happen. Unless Trump and the Republicans can get on the same page, delays are bound to happen, and treasury yields will continue to decline.
Click here to get today’s latest mortgage rates.
Across the pond, British Prime Minister Theresa May gave her much anticipated Brexit speech today. As expected, she did pledge to exit the EU single market, using language that signaled a hard-brexit. While her speech fell right in line with expectations, financial market participants are still dealing with many unknowns as the vote begins to make its way towards a vote in Parliament. Any economic uncertainties, be them abroad or domestic, usually put downward pressure on treasury yields.
That brings us to New York Fed President William Dudley, who said this morning that U.S. inflation and the pace of economic growth is not going to be a problem for the Fed in 2017. In other words, the Fed is not going to be forced into raising rates more rapidly than they would like.
All of this is important with regards to mortgages rates because typically, wherever the yield on the 10-year treasury note goes, so do mortgage rates. While it might mean there is some economic turbulence this morning, the 10-year treasury note has declined seven basis points from where it was at yesterday’s close, meaning that mortgage rates are most likely moving lower.
What does this mean for me?
Mortgage rates are on the decline. That’s good news for anyone looking to refinance or purchase a home. We’re in the midst of a potentially volatile week, and tomorrow’s CPI report could push rates back up. All in all, I think that borrowers are still better off acting sooner rather than later if they want to lock in a low rate.
Today’s economic data:
- William Dudley at 8:45am.
- Lael Brainard at 10:00am.
- John C. Williams at 6:00pm.
Click here to get today’s latest mortgage rates.
Notable events this week:
Monday:
- Markets Closed: Martin Luther King Jr. Day
Tuesday:
- Fedspeak
Wednesday:
- Consumer Prices Index
- Industrial Production
- Fedspeak
Thursday:
- Housing Starts
- Jobless Claims
- Philly Fed Outlook
- EIA Petroleum Report
- Fedspeak
Friday:
- Fedspeak
- Trump Inauguration
from Total Mortgage Underwritings Blog http://ift.tt/2jV4JRO
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